Elecnor Stock

[Interpreted] 

Dear shareholders, analysts and other stakeholders who are following up on the performance of the Elecnor Group. Before we start discussing the key highlights of this presentation, let me remind you of how this webcast works. First off, we are going to discuss the milestones achieved in the first half of 2026 from a group standpoint as well as broken down by business line.

We are going to discuss Elecnor's stock performance as well as the outlook for the overall fiscal year 2026. Then we're going to discuss the highlights regarding sustainability. And finally, we are going to open the floor for questions. You know that you have the webcast platform available in order to post your questions.

From a group standpoint, performance in the first half of 2026 was quite good. Net profit totaled EUR 68.1 million, nearly more than 36% year-on-year EBITDA, which is the best indicator in our opinion, in order to understand our cash generating capacity reached nearly EUR 143.6 million, up 28.4% year-on-year.

As for turnover, as you can see, we posted figures similar to the previous period, nearly EUR 2 billion. As for operating cash flow before taxes, which, in our case, is another financial shows solid performance by the group reached EUR 161.1 during this first half of the year. We nearly quadrupled our operating cash flow coming from ordinary activities compared to the previous year, which reached nearly EUR 40 million. As for executable backlog, in the next 12 months, we have surpassed EUR 3 billion, up nearly 6% year-on-year, which ratifies once again the opportunities that Elecnor can still offer to the market.

And last but not least, our key asset, that is to say the asset allowing us to present these results. I'm referring to our team, our people. We're already more than 29,000 people at the Elecnor Group, which accounts for nearly more than 5.3% compared to the prior period last year.

Now, let me focus on this slide. Here, we try to depict contribution by the different segments comprising the group, contribution to net profit, EBITDA and turnover, respectively.

Let me start out with turnover. Services account for EUR 1,218.7 million against EUR 776.6 million coming from Projects. That is to say 61% of our business volume comes from Services, 39% therefore, comes from Projects.

If we now refer to EBITDA and net profit and despite that imbalance because we perform more in terms of Services, we can say that Services contributes to EBITDA with nearly EUR 76 million, up 17.3% compared to the previous period in 2025.

Regarding Projects, we have posted nearly EUR 78.6 million, which is a positive figure. We have, therefore, grown by more than 44% year-on-year. Afterwards, we're going to analyze these items specifically.

As for net profit, in the case of Services, we recorded nearly EUR 35.6 million to net result, but to say, up 36.5% compared to June last year. As for Projects, we recorded nearly EUR 37 million, that is to say, up 64% compared to the previous period.

Let me now refer to Concessions and Own Projects. The key player here is Celeo. Due to our equity method approach, we apply this method for accounting purposes. It does not actually contribute to sales or EBITDA only through its stake coming from the results Celeo generates. As you know, Celeo is a key asset to the group with great long-term cash generating capacity as we shall analyze later on during this presentation.

Let me now walk you through the key business segments within the Elecnor Group. And let me remind you that under the current framework, the group is comprised of three key business segments for which there are three general directories.

We have Services, Projects, and Concessions and Own Projects. In this case, we draw a distinction between Celeo and then development and investment performed by the group. Next, we are going to give you more color on the key aspects characterizing each segment for the first half of the year.

Let me start out with Services. In this case, we include power or energy distribution, telecommunications, maintenance and installation Services. This is a manpower-intensive segment. Revenue totaled EUR 1,218.7 million, that is to say up 12.3% compared to the prior period. As you can see on this slide that we are now sharing on the screen, 75% of the business volume in this case is carried out in Spain. During the first half of 2026, we were able to grow by 20.7%, nearly 21% in the domestic market. As for the international market, we work mainly in Italy and the United States. We also operate in other countries such as the United Kingdom for Services. But the main international market for this general director corresponds to Italy and the United States.

We were able to do some, well, containment of 7.1% that we hope we will be able to offset in the rest of the year. EBITDA reached almost EUR 75.8 million, that is to say, up 17.3% year-on-year. On the other hand, EBITDA margin on sales for this period totaled 6.2% against 6% in the same period of the previous year. These margins once again reinforce stability as well as our ongoing expansion and growth, as it has been the case over the past few months.

During six quarters, six consecutive quarters and after this segmentation approach, our margins have been within the range of 6% to 6.5%, therefore, confirming this position and showing once again the great capacity that we have in order to continue delivering these margins and therefore, continue to grow.

Services reached EUR 36 million, 36% higher than in the previous period, therefore, showing excellent performance. Once again, as I mentioned before, this segment contributes more than 60% of the Elecnor Group's total revenue or sales.

Let me now focus on Projects. This is another segment, which comprises development, construction, operation and maintenance of clean energy generation and transmission infrastructure. During this period, we performed very well with significant increase in profitability. And this was underpinned by the selection and execution of Projects and prudent risk management as well as a positive performance of our international backlog.

These are all the elements that we have been implementing in order to approach new Projects, allocating top-notch professionals to deal with these Projects and therefore, tackle the risks that we face in each project.

Several of the Projects that we are now carrying out, especially in Latin America, are now well-advanced in terms of execution, therefore, naturally reducing certain construction risks and therefore, fostering or boosting margin growth, as you can see.

EBITDA stood at EUR 78.6 million, more than 44% compared to the first half of 2025. As for profit before tax, we recorded EUR 55.2 million. And as for profit after tax, we are talking about EUR 36.7 million, up 64% compared to the previous period.

Regarding sales and going back to the evolution of our larger-scale Projects according to our current scale, we have been able to well actually post 50% less compared to the previous period, leading to significant margins. In the previous period, margins stood at 6%. We closed 2025 at 6.8%. As we mentioned before, we closed Q1 with EBITDA at 7.4%, if I'm not wrong. And right now, we have posted 10.1%. That is to say a dual-digit figure. This once again shows everything that we have been doing through the implementation of our strategic plan, which let me remind you, that entailed some challenges because we had to push up the margins of certain Projects.

We are aware of the fact that the Services segment can deliver certain margins associated to certain risks, these margins being rather stable. These Projects, therefore, had to deliver this push upwards in terms of margins. During the first half of 2026, we have been able to post the double-digit margins, which are quite positive in our opinion.

As you can also see on this slide, this segment has certain characteristics. Almost 91% of sales come from the international markets. Let me highlight the Projects in Australia, New Zealand and Brazil as well as Chile that have made a significant contribution to this EUR 777 million. Let me also mention the U.K., Angola, Dominican Republic, among other countries, which continue to provide opportunities to the Elecnor Group. We are confident that in the forthcoming fiscal periods, we will continue to increase our business volumes in this market.

Now we're going to focus on Concessions and Own Projects. And let me start out with Celeo. Celeo is a company owned and managed jointly with APG, one of the world's largest pension funds. We are already present in 7,949 kilometers of electricity transmission lines, producing 345 megawatts of renewable energy to date.

The assets managed by Celeo accounts for EUR 6 billion at the closing of the prior fiscal year. We understand, and afterwards, we are going to review some of the key figures. But the indicator that best shows the performance of the Celeo Group has to do with EBITDA. EBITDA has contributed to significant growth of nearly 7.8%. This increase was due to the operations carried out by the different entities making up Celeo.

We have also commissioned some new Projects, particularly in Latin America. And this translates into increased sales and EBITDA and therefore, cash flows. On the other hand, this also accounts for more finance costs because all these Projects are already tied to some finance costs in the P&L accounts. And therefore, this has an impact on the financial statements of Celeo. And that's why we are not transferring this increased EBITDA to increased results of the P&L account.

However, we hope that this is going to be offset in the second half of the year. Some of the Projects that are currently being run by Celeo are going to be subject to pricing review in July. Therefore, increased prices might somehow offset that negative accounting effect that we now observe in Celeo. We believe that we are going to be posting similar figures compared to those reported in 2025.

Regarding Concessions and Own Projects, development and investment, let me underscore two key developments during this first half of 2026. First half, let me remind you that we, as a group, we are committed to allocating resources to investment assets, which is not an easy target. So far, we have committed nearly EUR 100 million, and this has been materialized into sub-projects.

A wind project in Spain. Construction has already begun, and we have already started construction of two photovoltaic projects in the United States. And therefore, we have committed all in all, nearly EUR 100 million to these Own assets in order to run these Projects that we timely announced in the past.

We continue to make efforts in terms of investment. It is true that profit in this case is rather balanced compared to previous periods. However, our investment effort is totally in line with the one made last year. So, the Elecnor Group has been applying conservative criteria.

But eventually, all this is reflected in our P&L account. Expenses account for nearly EUR 2 million, and this is offset by capital gains arising from the sale of certain stakes held by the group in some promotion companies, Moana and Eternelle to be specific whose corporate purpose in the case of Moana is the operation of a data center.

Regarding group management and other adjustments, this slide mainly shows overheads. That is to say all overheads arising from corporate services, administrative expenses, auditing expenses, among others. And then other expenses, which do not fall within the responsibility of any of the business lines making up the Elecnor Group.

As you can see here, overheads are also in line with the overheads reported in 2025. Now let me walk you through quickly our main consolidated results. I'm not going to dive deep into the P&L account because I believe that we have already covered the key segments of the group.

EBITDA reached EUR 144 million, up 28%, the same as net profit attributable to the company, which stood at EUR 68.1 million. Now, however, let me refer to the balance sheet that you can see on the screen. This balance sheet is very solid with equity in excess of EUR 1 billion, with working capital being positive, and assets in the amount of nearly EUR 4 billion.

This EUR 4 billion, however, do not include those EUR 6 billion on account of assets managed by Celeo. Therefore, this balance sheet is rock solid that also has a significant cash position and all this enables us to face any situation that we are faced by, across the different markets where we operate. This is our cash flow statement. I believe that this is one of the statements that best reflects the good health of any company's position.

In the first half of last year, our position was already quite positive. However, this year, we can say that we have performed very well. Operating cash flow before taking into account corporate Income tax payments reached EUR 161 million. This is 4x the figure reported in the previous period. Let me also remind you that in 2025, we had some significant cash inflows during the first half of the year as a result of the recovery of payment received in the amount of EUR 155 million, which this year was not the case. As for investing flows, EUR 57 million against EUR 36 million. Therefore, the fact that we have more activity right now, all this contributes to well, the more Projects, and therefore, we had to acquire more Projects.

Regarding financing flows, as you can see here, we are showing those financing flows that have to do with dividend distribution. Last year, we paid out EUR 265 million. That was an extraordinary dividend payout, resulting from the significant capital gains delivered by the Enerfin sale. This year, we are including EUR 36 million, and this is the interim dividend that complements the EUR 44 million to be charged to fiscal year 2025.

Once again, we believe that this is good proof of the solvency of the different business segments of the Elecnor Group. Our cash position with recourse stands at EUR 200 million. And the difference between last year and this year, apart from cash flow generation, is also related to the acquisition of new equipment and the fact that we had to pay out dividends.

We believe that in the second half of 2026, we will continue to perform just as well as during the first half of this fiscal year.

Now let me refer to the stock market performance. This was a fantastic year as at June 30, our cumulative growth was nearly 63%, even though there was a slight fall over the past few days. However, all in all, this is great news for 2026, and we believe that the market is really capturing the value that we believe this company has. There has also been a significant increase in traded cash in the first half, which stands at EUR 400 million for this period. So, we are performing very well. As for stock market capitalization, we are at EUR 3.458 billion, all in all.

This is the shareholding structure and treasury stocks slide. There's not much to report here. Our treasury stocks continue to be very stable, nearly 6% with our shareholding structure also remaining quite stable. So, there's nothing else to be added in this respect.

Concerning distributed dividends, taking into account our dividend payout, I would like to reiterate that our group is totally committed to pay more than EUR 220 million on account of dividends. We have already paid out EUR 44 million so far. We understand that we will be able to exceed this amount in the rest of the 2026- 2027 strategic plan period.

This is the forecast for 2026. We will remain aligned with the key trends that are underpinning world's performance. We're talking about urbanization, digitalization of the society, environmental and social sustainability. We remain in line with our strategic plan and the first half is good proof of this.

Once again, I would like to ratify the commitment of this group to paying EUR 220 million on account of dividends, as we mentioned before. Regarding the executable backlog that we mentioned at the beginning, we have already reported more than EUR 3 billion in terms of executable backlog. This is 5.6% more compared to the closing figure at the end of 2025.

As for the segment breakdown, Services outweigh Projects. The international market also outweighs the domestic market due to all the Projects that we are now being awarded in Australia, among other markets, which once again confirms the excellent outlook that we are considering as part of our business.

We are a people-centric company. This is our sustainable value. There are more than 29,000 people in this group. So, this is non-negotiable. We have to focus on people's health and safety. We have to provide people with good quality jobs, promoting equal opportunities for all collaborators. We continue to be committed to the environment.

81% of our revenue is certified by ISO 14001 on environmental management. Many of the Projects that we carry out require responsible biodiversity management and environmental protection in all the places where we carry out Projects.

Next, responsible management. Our compliance system is aligned with the highest international standards. We, of course, safeguard sustainable management across the group's value chain. Regarding the basis of presentation and valuation principles applied by the group, as you know, we use this approach in order to channel our investments in Albany Road Solar, Scott Road Solar, and Potter Road Solar.

These are the entities that we have set up in order to carry out photovoltaic Projects in the United States. And then Moana and Eternelle that were eliminated from the scope of consolidation as we have already explained.

You will find an appendix to all the information that we have already shared with you concerning details about this year's projects as well as the key financials that we have already discussed by business segment.

And now I'm going to open the floor in order to answer any questions that you may have.

Alvaro Navarro has posed the following question. In terms of the margin of EBITDA in Q2 has overshot in excess of 12%. Alvaro is talking specifically about the second quarter. What about your outlook for the rest of the year? What part of this margin corresponds to the EnergyConnect project in Australia?

Well, the EnergyConnect project has not yet reached the phase where all risks are mitigated. Therefore, out of this margin, actually not much is related to this specific project. We are working intensively hand-in-hand with a client. And we hope that in the coming weeks, we will be ready to make significant steps forward.

What about our outlook for the rest of the year?

The fact that we posted a double-digit figure is already a milestone. Therefore, we should aim at maintaining that double-digit figure and if possible, exceed that figure.

Regarding Concessions and Own Projects, could you please give us a breakdown of incurred expenses?

Well, Eternelle and Moana contributed nearly EUR 2 million, and therefore, this offsets the other EUR 2 million incurred on account of expenses arising from this activity. Could you please give us more information about the strategy that you are following, especially in the case of data centers and power and transmission lines?

As regards data centers, we continue to be present in that sector, even though we have done an investment rotation, specifically in Moana data, we continue to develop other data center projects, however. But for us, data centers account for a diversification opportunity. Developing these investments could open up new opportunities to the growth.

However, we are not relying our growth on this sector. This is just another diversification component to the Elecnor Group. This is natural to our core business. And as for power transmission lines, we are actively present in this sector. This is one of the key growth drivers for the group, and we are spotting already new opportunities in Australia, Brazil, Chile, Angola, the Dominican Republic, in addition to power generation projects, which are also related to power transmission lines, whether we talk about construction of this infrastructure or any works related to network stabilization.

In the case of power generation Projects, we also deal with storage systems because we believe that this should also continue to boost our Projects segment. In terms of cash flow evolution, we mentioned those EUR 200 million before. We have some tax payments, investments in new equipment. And therefore, we believe that we will remain flat even though we expect to report a slight improvement in the second half of the year, but we had to work on this.

Alvaro Navarro Is referring to a significant increase in the price of materials. So, Alvaro is asking how price increases of copper, aluminum, steel could impact our Projects. Well, we are tendering some Projects right now. And of course, this is something that will affect not only us, but also other bidders.

These are just additional risks, just another risk that we normally analyze prior to formalizing any contract. And we try to hedge ourselves against these risks. And we, of course, decide beforehand whether we can assume those risks or not. So, when discussing a project, we always analyze these risks, these materials required that we conduct that analysis in order to be duly hedged or covered. And in terms of profitability, and this is part of development and investment.

This is also concerned with Celeo. We are willing to post a minimum profit. And therefore, we must be very careful. We should never jeopardize profitability for the sake of cutting out a construction project.

Miguel Medina asks about the degree of trust that we have in terms of recovery in international services in the second half of 2026. The second half of 2026 was characterized by some activity slowdown in the United States. We believe, however, that we will be able to recover that fall of that delay and the fall mainly in business volume.

What about EBITDA margin coming from Services? Is this sustainable? Or is it distorted due to project concentration?

As I mentioned before, the Services activity is normally tied to framework contracts where each project is tied to a particular risk that is to be timely mitigated. This business is characterized by a profile or a risk profile that is totally different compared to Projects. Margin profiles are also different, the same as cash flow profiles. We applied this new business segmentation as of 2025.

So, during this reporting period and even during significant growth periods, the margins coming from this general director or segment have remained unchanged between 6% and 6.5%. And right now, we are more or less right in the middle of this range.

Miguel, sorry, is asking about our net cash flow expectation for the second part of the year. Although in the past few fiscal years, we have observed some cash flow seasonality in the second half of the financial year. Therefore, we are moderately optimistic as to cash flow generation in the second half of the year, even though the first half of the year was quite good in terms of cash flow generation.

Based on our experience and business development, we believe that we are not going to have significant difficulties in the second half of the year. Maybe we will have to, well, carry out some financial investments. But nonetheless, we expect a very good second half of 2026. As for the key projects in our portfolio, let me remind you that our portfolio is now rising.

The projects within our portfolio are projects that have already been formalized. Therefore, this backlog includes all those projects that we will be performing in the next 12 months. We have many new opportunities in Australia as well as in New Zealand. Angola remains another market where we continue to find new opportunities, the same as in the United States.

Therefore, right now, the U.S. is contributing mainly to our Services segment, but we are adapting our corporate structure in this country in order to foster segment growth. We, therefore, believe that this might be an important driver in the future.

Do you expect to keep these assets in your portfolio? Or do you expect to do any asset rotation?

Well, we intend to continue growing in this division. We are always paying attention to rising opportunities. Nonetheless, at this point in time, we are not actually curbed in terms of asset rotation. We have a good cash position and many opportunities in the pipeline. So, this is a segment where we are particularly optimistic.

What about margins in the medium term? Do you think that they are going to be normalized at middle single-digit levels?

Well, maybe this is rather pretentious, and you know that we are a very prudent group. I don't know whether we're going to post another double-digit figure, but we should be close to that figure. In the Sustainable Projects segment, we have to reach higher margins. In the case of Services, 6% or 6.5% is quite good. We feel comfortable with that.

In the case of Projects, as far as we continue to perform well and we continue to handpick our Projects, we believe that we might also build double-digit figures.

As for sales in Projects, do you think that falls similar to the ones reported in the first half of 2026 could be expected?

Well, we have to wait and see what happens when we finalize each project. At a group level, we expect to report figures similar to the ones recorded last year. Nonetheless, in the case of Services, we observe significant growth. And as for Projects, the same applies due to the execution schedule, even though we might fall slightly. As for next year, we do not yet have any specific or final figures, but we expect to continue growing in this sustainable Projects segment.

Celeo has not been awarded any batch of the Enel power transmission auction.

That is right. We have not been awarded any concession. But let me remind you what we do. In this case, profitability always prevails. Celeo has to report a certain return on the investment because Celeo is our investing arm. In this particular case, we have not been able to give up on our profitability expectations or our return expectations because, again, profitability is always prevailing in our approach.

Having said that, there are other opportunities coming up soon, and we hope that we will be awarded some Projects, both in Chile and Brazil, respectively.

Thomas is asking about the revenue decline that was accelerated in Q1 compared to Q2 and the geographies that account for this fall. Well, these are the geographies where we are running the most important Projects, specifically Australia and Brazil. So I insist, we are confident this will change. This is part of the natural characteristics of these projects, but we expect to reverse this in forthcoming quarters.

As regards Services, there has been a volume fall mainly in the United States and Italy. In the first quarter of 2026, in the United States, we reported lower business volumes. We believe, however, that we will be able to offset this decline in the second half of 2026.

There's another question concerning the correlation between EBITDA and EBIT correlation. As we continue to overcome some specific risks that have an impact on the provisions that we allocate. However, we're not talking about major impacts at a group level if we take into account our consolidation method. When are you planning to recover the guarantee deposit in Australia?

Well, we paid this guarantee deposit we had to formalize a forward contract. Therefore, we expect to receive those EUR 234 million translated into the relevant foreign exchange rate. When we complete this project, we hope that this is going to happen in the forthcoming weeks. We are working hand-in-hand with our clients in order to finalize all the pending issues concerning the reception process of this particular project.

What about the expected CapEx for the full year?

EUR 100 million approximately. That is to say slightly above the figure reported last year, mainly due to an increased business volume.

Alberto is asking me about the effect of the deposit in Australia. Excluding this effect, how do we expect working capital to evolve at a cash flow level?

Well, normally, this changes in the second half of the year. We have a very optimistic view about this. We have to wait and see what happens in the second half of the year, but we are quite upbeat about it.

What is pushing the significant growth of national sales of Services?

Well, historical clients are trusting us again and again, mainly telecommunications companies, utilities, power distribution companies. All these companies continue to trust the Elecnor Group. We are providing them with all the possible services within our reach, allocating all of the resources we have available.

Of course, we have some limitations because it's not easy to have highly qualified professionals, especially people who are experts on health and safety. It's very important for us to allocate people to work in the field who are duly qualified in terms of health and safety. So right now, domestic growth is being pushed by the fact that our historical or traditional clients continue to trust the Elecnor Group.

Well, as for Venezuela, given the political changes that took place in this country, do you have any updates about the potential collection of receivables after the write-offs a few years ago?

Well, we continue to keep tabs on developments in Venezuela. We have done our homework. We have filed all the necessary claims before the courts. This has been valued at 0 and the value of our rights will, of course, be changed and we will improve as the situation in the country improves as well. We have done everything that we had to do with respect to our client in Venezuela.

Alberto has one final question concerning the project in Australia.

Is this project delivering a reasonable margin given the fact that no provisions were released?

Well, not many provisions have been allocated to this project. Once this project is closed, we had to analyze the risks that we face and how we will hedge ourselves against that. As I said before, recurrent income is very important for us, and this project will be no exception. The margin that we expect is in line with our best estimates. Once the project is closed and delivered, we will have to analyze whether this might increase the margin recognized for this particular project.

However, so far, we do not see a special contribution regarding this project. We have advanced much more in Latin America than in Australia regarding some of the Projects under execution.

I do not have any additional questions. in the webcast window. However, if you have any questions, you can contact us through all the channels made available by the Elecnor Group CEO. Thank you very much once again.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[Interpreted] Good morning, ladies and gentlemen, shareholders, analysts and other stakeholders. First of all, we would like to thank you for your interest in following the performance of the businesses that make up the Elecnor Group. I'd really like to extend a warm welcome to those of you connecting this webcast from outside Spain. We truly appreciate your interest and confidence in our company.

I'm also pleased to inform you that for the first time, we offer the possibility to follow this presentation in English through simultaneous translation. As we have been doing regularly, we will begin by reviewing the main key figures achieved by the group in 2025. We will then continue with an analysis of the performance of the activity segments into which Elecnor's businesses are structured.

And we will continue with the key figures corresponding to the consolidated financial statements for this period 2025 as well as with the performance of our share price on the stock market. We will also address the group's ESG commitments, and we will leave some time afterwards to respond to any questions that may arise.

So allow me to look at the main key figures that we have achieved -- the group has achieved in 2025. First and foremost, the net profit from continuing operations reached EUR 110.7 million, which is a difference to 2024, which was given the surplus given the sale and meant an extraordinary result. This EUR 110.7 million allows us to reach one of the targets that we set in the plan, which was to recover as quickly as possible the previous results.

So we've been able to reach them. As for the EBITDA, we have reached nearly EUR 268 million, a significant increase vis-a-vis 2024. And likewise, we are focused on driving the margins of the different businesses that make up the Elecnor Group, and we will see this in more detail.

The turnover has reached EUR 4.3 billion, which represents an increase of 15.1%, driven by the largest projects that have been executed outside as well as the very good performance of the Services segment. The net cash flow from operating activities before taxation is at EUR 364.2 million. We recognize an excellent data, which represents a plus 10.8% vis-a-vis the previous year, where we reached EUR 328 million, which is a very good indicator of the financial solidity of the businesses of the group.

And thanks to that, we have been able to end the year with a cash flow of EUR 200 million approximately which means an increase of 6% vis-a-vis 2024 after having distributed in dividends all the profit that after the sale that we said before. The executive backlog in the next 12 months has increased by 5% compared to the previous year, driven by the different macro trends, which are allowing that outlook of the group or the forecasts are good.

Dividend suggested for 2025 amounts to EUR 44 million, which represents a 12.4% increase compared to the previous year -- compared to 2023, 2024, it's a very special year and a 12.4% increase, which means an increase of the payout, which is 40% higher compared to previous years, which was around 36%. Both the very good performance of businesses, the cash flow that we are creating, the financial instruments that we have reinforces or allows us to reaffirm our commitments that for 2025 to 2027, we will be able to exceed EUR 220 million in dividends. I would like to talk about the key operational figures for 2025.

The net profit is EUR 110.7 million, EBITDA EUR 267.8 million and a turnover of nearly EUR 4,400 million. What we can see on this slide is that the Elecnor Group has a significant weight on the Services segment, and we will look at the characteristics and the performance in this first part of the presentation, 55.3% of the net profit corresponds to services and 50.3% of the EBITDA and more than 50% -- 55.3% of the turnover corresponds to the services.

With regards to projects, they represent 35.9% in net profit, 46.4% in EBITDA and nearly 45% of the turnover. The concessions and own projects segments whereby we manage through AGP and Celeo represent nearly 9% in the net profit and 3.3% in the EBITDA. The integration of Celeo in the accounts, we have a joint control together with the partner, AGP, and it's representing 51%, but we cannot look at the dimension of the Celeo and well, it allows us to see the great value that we have in the group rather.

And looking at one of the topics that was addressed at the strategic plan that we shared last month at the Investors Day, we would like to look at where we are concentrating our businesses. These EUR 4.4 billion in sales, 52% of which are achieved in Europe, specifically in Spain. In Central and South America, we have around 27% of sales in Australia, 9.2%; in North America, 9%; and in Angola, 2.7%. And we would like to highlight the following.

We work to strengthening the business and our performance as to becoming the top 8 -- these are 2 top 8 strategic countries account -- like Italy, Spain, Brazil, Chile, Dominican Republic, Australia, United States and Angola. So in the more strategic diagnosis, we said that 50% of the sales came from -- well, 88% of the sales came from these countries. For 2025, we see that we are confirming this trend.

So 88% of sales come from these top 8 strategic countries. With regards to sales by business activity, we can see on the slide that over 50% of the activities are related to electricity. These are projects, transmission construction projects as well as O&M operation and maintenance of -- for the distribution and low and medium voltage with utilities.

These are the traditional projects for Elecnor apart from energy production, facilities and construction, maintenance and then -- maintenance, we are still making progress, and we are consolidating figures that we had in the maintenance activity. This is a service activity that plays a very important role in the years to come. And then looking at some other main figures, the executable backlog in the next 12 months. So that project is part of this figure needs to be under a contract.

We have had to have approved all the phases with the customer. In case there's an upfront payment, this payment has to be made. And these correspond to the executable backlog in the next 12 months. Like in the services projects or segments, it's normal to have multiannual projects. So we only consider those that are going to be executed in the following 12 months, what you can see. So this represents 5% more compared to what we had at the end of the previous year. And this is an evidence of the outlook that we had for the following period.

With regards to the distribution by business segments, projects represent 60% approximately and services and 41%. And with regards to the geographical distribution, nearly 70% is international and 30% from Spain. This clearly evidences our international orientation in the group. Let's move on to analyze business segments.

First, I would like to recall -- remind you that this is the first financial year where we segment the group's activity in these 3 segments. And doing a business overview among the objectives that we had when we did the strategic plan reflection, they don't have the same risk profile. They're not analyzed equally, and they don't have the same cash flow generation, services and projects and even less our investments in concessions and own projects.

So within this new organization, we have 3 general business directors. And based on these 3 segments, we would like to share the analysis, and we've been communicating our results in a continuous manner based on these 3 segments that you can see on the slide.

So let's start off by explaining the performance of services. As we said before, Elecnor, 55% of the business at Elecnor is related with this first segment. And this segment integrates energy distribution, telecommunications, maintenance and installation services, which are essential to generating change and driving well-being in those countries where we operate. Sales in services reached to EUR 2.4 billion. And this represents an increase of 12.5% compared to the previous year.

As for the -- well, the domestic market has driven this growth, especially services that we develop in electricity and telecommunications, water and transmission and distribution of energy. I would like to highlight the maintenance activity carried out for both the public and private sectors as well as some initiatives of self-consumption and energy efficiency initiatives in the international market.

We provide services in the U.S. and in Italy in a significant manner. And this market, well distribution contracts and telecommunications has contributed significantly to the segment's performance. EBITDA in the Service segment reached to -- reached EUR 144.2 million this year, representing an increase of 37.4% and the margin -- the EBITDA margin on sales for the period is 6%. And especially -- well, what's important is the margin obtained the EUR 144.2 million this year is a profit before tax of EUR 85 million with a consolidated of the attributed consolidated net profit of EUR 61.5 million.

Let's move on to projects. The segment comprises development, construction, operation and maintenance. And it drives the goal to improve the conditions of the communities and enhancing sustainable development in those countries where we operate. There we can see some figures. And this -- the Projects segment showed a solid performance during this year. 91% of the sales are outside Spain.

And in 2025, countries like Brazil has had very good performances. Australia have been above EUR 300 million with a very special project. The Dominican Republic, where we have a business activity of EUR 300 million and which has been strategic, too. So the turnover -- and the turnover has been EUR 2,000 million, which has represented 17.1%. That's the turnover.

And the national market, the domestic market, we have continued building infrastructures for electric energy and with the building of renewable farms and power. So Chile, Brazil, Australia, where we've had bigger businesses, what we reached in 2025 compared -- like, for example, the power transmission lines that has meant EUR 270 million in sales and another combined cycle project in Brazil, and it represented EUR 300 million for the group.

And as for the rest of the projects that we are doing in the segment substations, transmission lines in Angola, Senegal in the United Kingdom and Ireland, photovoltaic parks in the Dominican Republic, among many other projects. So we've reached EUR 133 million in International and the margin is 6.8%. We have observed a better performance in the last part of the year. For those of you who follow us regularly, the margin that we were informing was around 6% for this business segment. So we were above that 6%, and we are at 6.8%.

A very clear goal at Elecnor is to drive margins of activities, especially in the Projects segment. The Project segment has to give us a greater margin compared to the Services segment. And these figures evidence that. So we reached attributed consolidated net profit of nearly EUR 40 million. So we covered -- we've hedged all the risks that we have been identified. And this is part of the policy that we have of the group to have a conservative approach to the consolidation of results, and this won't change and it hasn't changed.

Let's move on to the Concessions segments. I mentioned before that figures with which Celeo provides. Sales, EBITDA and results, it's -- sometimes we cannot -- we don't get to see the potential of the value that Elecnor has in this activity segment. I would like to just remind you that together with [ APG ] owns 51% of the Celeo. And the book value is EUR 550 million. And allow me to talk about one of the topics that we shared in September.

The reasonable value of the Celeo Group under the equity method exceeds EUR 500 million. And the Celeo Group manages through its vehicle companies, nearly 8,000 kilometers of transmission lines in Brazil, Chile and in Peru. 350 megawatts of renewable energy in Spain and in Brazil. In Spain, through 150 megawatts of solar panels and 220 megawatts of PV. These, the latter happened in Brazil.

So if we take the figures of the Celeo, the books of the Celeo Group, we see there on the slide -- on the table on the slide that the turnover is close to EUR 300 million with an EBITDA of EUR 200 million and earnings of EUR 32 million. So this represents for the Elecnor Group EUR 16.1 million, which represents a 32% more. This would be the EBITDA part. And this is not included in the balance in the results, and that's important to mention.

And we also wanted to show you this, the EBITDA attributable to Celeo with regards to the projects that they manage, it corresponds to EUR 214 million and using the equity method. This is -- it just give us a reference of the enormous potential of cash flow generation by Celeo and which represents the value that we have in Celeo, and I was referring to earlier on. This capacity to generate cash flow in a jointly manner comes mainly from transmission in Brazil, which represents 44% transmission in Chile, accounts for 30.5%. And there, we see renewables. Spain, which account for 1/4 of the EBITDA attributable to Celeo. And this is related to projects that are already ongoing and are being operated.

So apart from -- through the Celeo Group, Elecnor, which is one of another strategic target. It's committed to allocate, as we said in our strategic plan, more than EUR 400 million. And it's a very ambitious goal, and we are making steps -- prudent steps to reach this goal. And in this slide, we can see the expense that we are putting on to the profit and loss account, and it shows this investment effort. And we are seeing the first results.

And in 2026, we will start to build some of the projects where we are at the end of the development stage, and we are going to make this happen. We are working a lot in looking for new investment opportunities through Celeo or through other investment platforms. The idea is to look for high-yield opportunities and one-off opportunities, both in the domestic field as well as in the international field.

Let's look at the main key figures. We have looked at it by segments and how these translate into the consolidated financial statements. So EUR 4.4 billion in sales, net turnover, consolidated EBITDA of EUR 268 million and total net profit attributed to the parent company of EUR 110.7 million. And if we compare it to 2024, and you can see on this slide, is very much impacted by the sale in 2024.

Another thing that we would like to mention, and it's a very good indicator for 2025. In 2025, we have generated pretax cash flow of EUR 364.2 million. This is excellent in our opinion, a very good indicator of the quality of the performance that we are actually acknowledging here. Over 2025, the group recovered the payment on account of corporate income tax on the sale of Enerfin shares paid in the previous year in excess of the final assessment.

So the cash flow influence is related to these. This is a net collection of about EUR 104 million and as a result of the acquisition of the property plant and equipment and the incorporation of the new companies. And we -- as we -- as I say, we have made a net investment effort of EUR 104 million, mainly as a result of the acquisition of property, plant and equipment. And we made investments in new companies in order to have more presence in certain parts of the activity.

As for the financing activities, the negative net cash flow is EUR 249.4 million, which mainly reflects the cash outflow for shareholder remuneration in the form of dividend payments. This EUR 273 million, EUR 265 million were related to the 2024 results up until we had EUR 805 million. So the outflow was EUR 265 million and plus the payment on account that was carried out at the end of last year.

With regards to the financial position and the balance of the company, the net financial position with recourse ended the year at EUR 199 million after having made the payment of dividends related to the surplus of selling Enerfin. So we ended up with EUR 199 million.

So this allows us to approach all our commitments when making investments as well as sharing the cash flow generation with our shareholders. The balance structure and year end is very balanced with asset of more than EUR 990 million -- with the net financial position recourse at EUR 199 million. And how about the performance in the stock market for Elecnor Group. Throughout this session, we have talked about certain figures. But I would like to talk about the performance of the dividends over the past years.

If we take away of this analysis, the uniqueness of what happened in 2024, we come from financial years where we've been sharing up to 36% of the consolidated financial statements. For 2025, if it's approved by the shareholders' meeting, we will go up to 12% more compared to 2023. We will distribute 44%. And we've done that by improving the payout from 36% to 44%. So this is within a financial context. Cash flow generation, financial assets of the group. It will back the commitment of distributing more than EUR 220 million between 2025 and 2027.

And with regards to the evolution of the share price in 2025, we believe that it's been an excellent year. How we account for our activity has driven to get to know -- so that people know the company better both for the Services sector as the Project segment and as well as the value that we have in the Celeo, and we will keep on making efforts to provide all the information so the shareholders can invest.

With regards to the share price performance in 2025, we started off with a closing share price of EUR 24.5 and we will be around -- well, you probably have this information right now, we have the total cash traded was EUR 744.1 million, which are significantly higher than what we saw in 2024. So therefore, the liquidity in the company has improved significantly. The market capitalization at the end of 2025 was more than EUR 2,100 million, and we are capitalizing at EUR 2,400. This shows the excellent performance of these figures for the company.

And with regards to the shareholder structure and the treasury stock, the pie shows is stable structure. Cantiles holds 53% of the shares and the rest is also stable and which is similar to previous financial years, as we can see in the pie chart. With regards to the forecast in 2026, there are specific macro trends like energy transition and the electrification of the economy, urbanization and digitalization of the society and environmental and social sustainability.

We reaffirm our profitability and cash generation objectives contemplated in the 2025 and 2027 strategic plan. And our aim was to be exceeding the goal in sales, and we have exceeded. And the idea is to continue being exceeding the EUR 100 million in net profit in 2025. And we talked about generating EUR 350 million in cash flow in the 2025-2027 strategic plan. And I think we're on the right track. We've had an excellent year with regards to cash flow generation.

With regards to our ESG commitments, we are focused on people. There are more than 28,000 employees. And the main objective is that people go back to their homes safely. We are driving improvement of -- we're trying to improve the accident rates. We are improving and increasing all the health and safety measures. And that's one of the key cornerstones. We believe in the promotion of equality and opportunities for all.

And on top of that, we are committed to the environment. 81% of our turnover is certified by ISO 14001, environmental management systems. And we work on biodiversity management and environmental protection in all projects. We want to include this aspect, which is critical for a group to develop these projects. And then in terms of compliance, we believe in responsible management.

We have a compliance system, which is aligned with the highest international standards. Not only Elecnor, but the entire supply chain needs to be aligned with the group's sustainability standards. And we believe in an ethical and responsible management of the entire group value chain. And apart from this, you will find annexes of all the projects and all the figures that we've shown.

And now we are open for questions. Any questions that you wanted to ask. So far, we haven't received any questions. So I think everything was very clear. As we always say any question, all channels are open to take on any questions that you may have.

We would like to thank you for your interest that you follow our company. And I would like to thank you for your participation, and we invite you for the following results presentation.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Well, good morning everybody. I'd like to introduce myself. My name is Alexander Arrola, and I am the Financial Director, the CFO here at Elecnor. It is a true honor to welcome you to this event. This is the first Capital Markets Day in over 67 years of history of the Elecnor Group. Thank you. I'd like to thank all those of you who are here today, face-to-face as well as those who are following us via streaming. For those of us who are part of the -- of Elecnor, it is an honor, and this is a very important event that we have prepared with a huge deal of effort and dedication.

So -- please allow me to give the floor now to our President. Jaime, please. You've got the floor.

Is this working? Hello? No? Well, first of all -- now it does. So otherwise, you'll be able to hear what I'm saying, thanks to my powerful voice. Well, thank you, Alex. And I want to thank those of you here today and as well as those following us through the Internet. And as Alex mentioned quite clearly, this is a very important event for us. As you know, we have made an important effort, and we have been working hard on many years on communication about the -- within the Group Elecnor. Five years ago, back in 2020, we made a spin-off of assets. So we could start communicating different activities of the different parts of the group. And last year, we held 2 general meetings, 2 of them were extraordinary shareholder meetings to carry out the most important operation that the group has done which was the sales of our subsidiary, renewable subsidiary. Everything was approved by the shareholders. And of course, offering all the transparency that a usual practice in our company. So today, the Investor Day is very important for us. And I hope it's also very important for all of you.

And now we're going to give the floor to Alberto Garcia de Los Angeles. He's been part of Elecnor for, my belief 18 years. He is the CEO of our group starting in January last year. He is going to detail the strategic plan 2024-2027. Although he already mentioned it back in the General Shareholders' Meeting that took place from May 18. And he will elaborate on it and provide more detail for all the stakeholders and investors.

So thank you very much, and I'm going to give the floor now to Alberto García de los Ángeles. There's 1 more thing. I won't be able to stay to the cocktail because I have another appointment, but I hope you enjoy it. Thank you very much.

Thank you, Jaime and Alex, for your introduction. And good morning, everybody. Thank you for being with us today. As I mentioned, both who are here in this room as well as those of us -- those of you following us through the Internet. It's a pleasure to address you as the CEO of Elecnor in our First Capitals Day -- Capital Markets Day. It's a milestone clearly for the group.

So my link to Elecnor, it's probably a vocation, but also part of my family. My father was foreman at Elecnor for over 35 years. So I could basically say that -- well, my first pacifier had Elecnor logo on it. And for over 17 years, I have had different positions here in the group. I started in business development. Then I went through international management in the United States where I spent over 11 years, 7 years in California, and for New York -- well, I was in charge of all the operations of the group in the United States. Four years ago, I came back to Spain, where besides -- and in my position, I was in charge, I sort of been in charge of the coordination of one-off the areas -- in the area we call services. That's why we develop functions of telecommunications and maintenance amongst others.

And before [indiscernible] I would like to thank our team and none of the things we're going to be showing here today will be possible without the dedication and the work of over 24,000 people who are part of the group. All the results achieved throughout our history have been backed by their daily commitment and their work.

And in terms of today -- of today's agenda, we will start sharing with you our vision, our business model and our strategic plan. And then we will have a Q&A session in which Alex Arrola, our Financial Director, will be with me to answer your questions. And last, we will be able to chat during the cocktail that will be available to all those of you who are here today.

And you might be wondering why, why today or why now? And well, the answer is that Elecnor is opening a new phase. And having this 67 years of history supporting us, we are facing a leadership change and a transformation plan that will allow us to keep on growing and building for the future. And please allow me to share with you 3 reasons why, in our opinion, the Elecnor Group is a very appealing investment opportunity. First of all, our track record, both in terms of growth and return to our shareholders. And we have doubled our income without any surprises. We closed in -- well, 2024 with net cash flow and have growing dividends always in cash. Between 2014 and 2023, the dividend grew above the figure of 81%.

And besides, the Group Elecnor is fully aligned with the mega trends that are impacting everybody in general, but especially our sector. And I'm talking about electrification, urbanization and utilization as well as sustainability. And they are, of course, engines of our business. And we have differential capabilities in these sectors. And then our strategic plan, which is the tool with which we want to reinforce growth and value creation in the next 3 years. And the objective is to double the dividends shared -- with the dividends that we share between 2021 and 2023.

But I'd also like to explain what defines us and part of it. A big part of our identity is our safety culture. And this is not just another task. It's clearly part of our core, something that's nonnegotiable of 24,000 workers who carry out activities, and many of them actually carry out activities with risk. And our main priority should be to provide them with a training and the mean so they can all go back home safely. And this commitment can be seen in the fact that over the past 3 years, we made quite an important investment, both in training and resources over EUR 100 million, also in the constant drop of our risk factors and a culture that permeates all the company from the management to everyone who's working on the field. So I really want to thank all these people have made as a reference in terms of prevention. I would like to once again reinforce the commitment of the executive team, the management team to get to our goal, which is 0 severe accidents. And of course, that's been our starting point.

And having said that, I'm going to try to explain what Elecnor is today. We are a global infrastructure group of energy and services over 24,000 workers. In 2024, we got to a turnover of EUR 3.8 billion with an EBITDA above EUR 200 million. And today, we are operating in over 50 countries. And about 85% of our sales focus around our 8 main markets that we can see on stream. And over 80% of the activities are based on OECD countries -- in OECD countries which means that our international growth is supported by stabled economies. And this combination of scale, diversification from a geographic perspective and technical skills are a competitive advantage that allow us to win referential projects and have recurring contract -- services contracts.

So how do we manage this geographic diversity and the amount of workers involved in the group? Well, we do it through business model that's divided in around 3 axes. And it's been divided, they also generate synergies and reduces risk. So this model that's already been implemented. We started implementing -- with the implementation this year. Well, includes general goals and specific goals.

So the first block is services. As we can see makes up around 55% of our revenue. It provides an EBITDA margin of around 6%, quite stable margins and also the short-term generation of cash flow. We are talking about maintenance, telecommunications and facilities. So probably when you -- whenever you see one of our vans in around Madrid, well, that's -- they're probably part of this segment. And for example, when you go to Terminal 4, the airport, well, we carry out a big part of the maintenance of that terminal.

Second segment would be projects. So it accounts for around 45% of our revenue. And in here, we have big infrastructures. We talked about transmission and substations, railway, renewable energies and those are more complex contracts, but from a technical perspective, but the potential of margin is bigger. And in this segment, we have proved a track record with us almost no incidence that which is something that doesn't always happen in our sector.

And just to share with you an example, I'd like to highlight the construction works of -- in the Amazon River. So it's a line that cross study -- well, the rainforest of the river. And we had to build 2 towers that were over 280 meters, which is the equivalent of the Eiffel Tower.

And last, the last segment would be investments. We are developers and investors as well in strategic assets that provide value in the long run. And we are talking about concessions or asset platforms such as transmission lines or renewable energy projects. So those are investments that generate constant revenue. A clear example would be Celeo, one of our subsidiaries and they have over 345 megawatts in renewable energies.

And what's truly relevant here are the synergies between each of these blocks. Projects provide opportunities for services. Services get us closer to our customers. And through the investments, we can have a more stable cycle. This multiplies our ability to grow. All of it thanks to our differential skills because at Elecnor, we aren't just a service or an engineering company, we are differentiated by key skills, capacity that we have developed in our 67 years of history, engineering and technical knowhow that allows us to adapt our solutions to the needs of the client, guaranteed ability of executing, which has allowed us to -- which is very important, a strong commercial services and also financial discipline that allows us to offer sustainability and profitability in every project.

And thanks to all those skills and abilities, we are able to cater for the needs around all the value chain from the identification and design of an operation all the way down to operations and maintenance. But if something differentiates us even more than these abilities are the people and the values we share because we are not serving the product. We provide services and execute projects. And we do all of it. Thanks to our people, we are clearly -- our biggest competitive advantage. And that's why attracting, taking care and keeping talent is a strategic priority.

And that's why I'd like to share a piece of information. I believe it's a very eye opening. Our management team made up by over 250 people have been in the company for over well, the average synergies 20 years, which shows that we have our own style, which is something that we're able to do throughout the management of all the business. And this commitment with people isn't just part of history. It's also one of the keys for the future. And we know it. And a big part of our strategic plan is going to be based on this ongoing training and fostering international mobility and being able to attract more talent.

And in my own experience, I can assure you that Elecnor is a company that's built through effort and long-term vision. This respect to our people have allowed Elecnor to be after 60 years, a robust and a reference in our sector. And in a volatile environment like the one in which we're in today, we firmly believe that our values provide us with an important competitive advantage. We don't just want to grow at any cost. We want to grow in a sustainable and coherent way. And of its linked to a very clear purpose which is to provide opportunities for people worldwide. And this gives meaning to everything we do and links what we do every day with a positive impact on the planet. And this is something that, I mean, we'll try to show through a clip that we will play right now, but it's probably better than any words I can share with you.

So why do we wake up every morning? To come to work? Is it money? Is it for the kids?

[Presentation]

Well, our strength is the combination of diversified model based on around 3 pillars and values and guidance. This formula helps us be resilient and grow in a sustainable way. And I guess you probably agree with me with the fact that we are going through a pivotal moment which trends are changing the world, but more specifically our sector, which always also presents us with a huge opportunities. First is electrification. So this energy transition, decarbonization and digitalization require new and more robust of grades that are able to interconnect renewable energies, and that has been the core of our growth, and we'll keep on being it.

Second is urbanization and digitalization, as we know, the cities of the future require more resilient infrastructure. And I'm talking about transportation, water, energy efficiency. And at the same time, digitalization and artificial intelligence require more powerful systems and grids and Elecnor is at the core of that deployment from telecommunications all the way down to electric mobility.

And third is sustainability. ESG criteria, European taxonomy or energy efficiency criteria for the -- for Group Elecnor. It's not something that's just fashionable now. It's something that's actually part of our identity and it's been part of our identity for all these years. And this -- all these mega trends that I just mentioned, reinforced and foster our business model and its impact can clearly be seen in our results.

As you can see in the -- what's happened in the past 10 years can be seen in this slide. Elecnor's growth constantly, we have doubled. So it's going from EUR 1.8 billion to over EUR 3.8 billion. And we have achieved all of it through recurring business and without big surprises, we generate more trust amongst our clients, employees and shareholders. This sustained growth can be translated to an annual compound growth of around 7%. And net benefit has also grown consistently, thanks to net profit has grown considerably. Thanks to this recurring services. We have been able to have a cash flow and great cash flow. At the end of the year, we had a net financial position that were well below their usual ratios.

An example of these has been Enerfin that multiplied by 3, the investment pay back in 1997 and will generate an important dividends for the group, which shows that the group hasn't just grown, but it has actually grown in a profitable and sustainable way with financial strength, which are factors that are clearly valued by the markets. And as I mentioned, not only have we grown, we have shared that value with our shareholders constantly between 2014 and 2023 annual dividend went from EUR 21.8 million to over EUR 40 million, almost EUR 40 million, always in cash without using scrip dividends. And this shows EUR 384 million in the past decade. And this shows that our payment to our shareholders is stable and can be forecasted. And having said that, we are looking at our strategic plan and our objective is to increase the remuneration to our shareholders, thanks to our solid cash flow generation and the strength of our balance.

We are able to reward our shareholders without hurting our financial stability. And the conclusion is clear, Elecnor shares with its shareholders the value it generates. And you can rest assured of the fact that, that philosophy will not change. We have always betted on a sustained and sustainable growth. And we have grown the bus ticket, but always with discipline, taking care of the cash flow, keeping our solvency and prioritizing profitability above volume. And let me say this again, we never -- we don't sacrifice profitability for volume. And to do so, we manage carefully our debt limits, our cash flow, our operating cash flow. And throughout the whole company, we promote a culture of anticipation and preparation supported by a rigorous control system. Thanks to being careful. Elecnor today has a very solid financial position. And the reality is that Elecnor is amongst the companies with the lowest cost of funding.

We have had issuance with a cost of Euribor plus 20 basis points in our issuances. And this is an extraordinary milestone and shows the position in the market. And as a summary, our strategic principles haven't changed and will not change. So prudent and profitable growth, a strict management of risk and a solid cash flow generation. With such a strong base and the discipline that's part of our DNA, we are ready to take the next step, our 2025, 2027 strategic plan. The strategic plan is a road map and it's what we want to -- the tool we want to use to create growth in the next few years. As we can see on screen -- it's made up by 6 levers. 3 of them are exactly -- we have used the same names as the segments we use in the company and the ones I explained previously. And then we have the strategic drivers, all the 3 levers and the other ones that are crosscutting throughout the whole organization.

The first one is services. And we have a clear objective, which is to grow with more profitability. We want to bet on value-added services, reinforcing the relationship with our clients and increasing in operational efficiency, thanks to new technologies and manage, we know is quite strict. We want to improve margins in a business that has traditionally been a volume business, but we are sure we're going to make it. And second lever are projects where we want to make a leap -- and the goal is also to increase our margins. We want to focus around the infrastructure projects. We want to focus on international markets where we can capture projects with a greater value, thanks to our formidable track record in terms of the execution of EPC projects.

And third lever is investment. Clearly, this lever will allow us to keep on adding value in the long term through strategic assets and a prudent risk profile. Our objective is to commit over EUR 400 million in investments using the cash generated by the business. But if possible, we would have access to corporate debt by keeping a debt ratio below 1.5x our EBITDA. We'd like to invest in transmission, renewables, energy efficiency or digital infrastructure. Those are investments that provide recurrent revenue provide stability, and they reinforce something that's essential for us, which is our will to remain relevant and our vision of the future. Fourth lever would be people, clearly our main focus. Our growth has been supported historically through the development of our professionals because we are sure of the fact that the most valuable times, the one that evolves within the company, and we would like to foster international mobility and knowledge transfer.

And we want to increase the possibilities of growth through the acquisition of new digital capabilities, which is something that's also linked to the next lever, which is digital transformation and innovation. Technology, it's advancing at an amazing pace. And at the group, we have decided to make the most of it. You probably agree with me on the fact that this digital transformation is not optional. It's actually essential to be able to be competitive in the future. And we see digitalization as a way to capture more value and improve our efficiency, our competitiveness and our ability to stay ahead. And that's why we are tackling it decisively. And we are devoting a relevant deal of resources. We want technology to reinforce people, not replace them. And we want to give them better tools so they can carry out their work in a faster way, in a more efficient way and in a safe way.

We want to use robotics and artificial intelligence to improve the efficiency. We want to buy the latest technology. And we also want to make decisions through better data analytics. Those are just examples of what we're doing. And the objective is to turn Elecnor into an even more agile company, a more connected company and a more intelligent company. In terms of the value we provide to our shareholders in 2025, '27, our objective is to go beyond the -- well, the levels we had before selling Enerfin. We talked about over EUR 100 million a year, and we'd like to remunerate our shareholder in an attractive and sustainable way. So our plan includes to distribute -- our plans to distribute over EUR 220 million throughout the 3 years, we'll need to double the dividends shared from 2021 to 2023. And this increase will be fostered by the strong cash flow generation that we have forecasted and a healthy financial structure that allows us to combine growth and share dividends without putting more pressure on the balance.

So we are sure that Group Elecnor is able to grow and at the same time, increase our dividends because we have a very robust cash flow and recurring business that generate liquidity. We are sure of the fact that value creation can't just be financial. It needs to be also social, environmental and ethical. That's the only way in which we are going to be able to guarantee our future. And that's why our commitment to our society is to generate sustainable growth with a real and positive impact in the communities in which we are. And our corporate purpose and summarize it properly. We like to foster development and create opportunities. We want our company to be -- to generate advancements in the communities in which we operate and for the planet we all share. So rest assured, we will keep on advancing with conviction in our environmental and in projects with social impact and the take care of our environment as well as with the development of knowledge transfer in Elecnor.

And of course, we will keep on our commitment with good governance by fostering more compliant systems and generating a culture of integration. So ladies and gentlemen, Elecnor after 67 years of history, feels young with renewed energies, and we're entering a new phase, a phase that's exciting. And without forgetting who we are, we want to go beyond. We'd like to innovate. We want to be ahead of the game, and we want to grow with purpose. And we see we're growing with a purpose. We wish -- we don't want to grow just for the sake of it. We want to grow in sustainable way by creating value. We have the right structure. We had a team that's prepared. And my vision for Elecnor is -- it goes around idea, which is to grow with a solid foundation. And of course, we've got that solid foundation. And our experience, our reputation and our technical skills and cultural -- corporate culture.

I see Elecnor Group deploying electricity grids wherever it's needed or building generators or solar panels. I see this group moving forward with new times being more agile, more digitalized and more sustainable, a company where processes are optimized, thanks to technology and decisions are taken, thanks to real-time data. I see a company where generational handout is guaranteed, Young people are trained in our company. They will be the leaders of tomorrow. I see Elecnor Group growing from a solid base towards a promising future without forgetting where we come from because Elecnor doesn't just build infrastructure, it builds trust and future.

It works for infrastructure that we deliver every service provided leaves a footprint that stays throughout time and improves the life of people. This is our philosophy, doing a good job today to deserve growth tomorrow.

And before closing, I would like to thank you again for being here today. I would like to thank our investors for their trust. We are committed toward this with results and transparency. I would like to thank our customers because they challenge us every day to be better. And I would like to thank our people, the soul of this company because they make impossible things possible over and over. Thank you very much.

And now as I said earlier, our CFO, Alex Arrola will be here with us for a Q&A session.

Congratulations for this presentation of all these years of track record. I have 2 questions for you. First, regarding your investment plan, this EUR 400 million. Could you please give us some explanations regarding the sectors you want to invest in your expectations in the investment plan? And the second question, the elephant in the room in our sector today is data centers. What's your exposure? What plans do you have in this business?

Great. If you allow me, I'll start with the second question. Regarding data centers, we have investment plans. We are developing our own data centers. And regarding construction, this is something we pay attention to very actively. We are continuously analyzing opportunities, reviewing offers, creating a team to be able to face this type of project. First question, investments. Well, first of all, I would like to say that we want to commit up to EUR 400 million. I'm saying committing because as you all know, after selling Enerfin, we have this platform I've mentioned Celeo but we are developing a new platform, Elecnor Value. Obviously, what we want to do is to start identifying projects, transmission lines, renewable energy projects, data centers. But in general, any type of asset that will give us this long-term stability, this long-term value that will complement the service activity that's generating short-term value and project activity that generates midterm value.

Is there anything you would like to add, Alex?

I think it's perfectly explained. I'm sorry, comments of Mike.

Well, that's going to depend on each project and location. I cannot say this right now. We carry out a thorough risk analysis, not just the investment, but also the construction part. And with that, we define our targets. I would like to add something. Our intention is to build a new investment platform little by little. Let's not forget that Enerfín Adventure lasted 27 years. Obviously, we need to do things little by little with solid foundations. This prudence culture that we all have, as Alberto mentioned, this is part of our identity. Each project is a decision.

So there's a difference depending on the country, the technology involved -- our best case could be Celeo. Each project is analyzed, not just from profitability to shareholders' perspective, also constructors. So we have to analyze all the risks. We refer to risks once again. I think this is one of the things we pay more attention to in the strategic plan. This is about risk and risk analysis. The investment risk, the risk when you build an infrastructure, this is paramount. A specific figure, that's really difficult to say. It depends on the moment, the country, the technology.

Thank you again for this event and the effort you're making in communication. I have 2 questions. First one, it's related to investments. I would like to better understand what you think about project allocation, this EUR 400 million you've mentioned, Celeo versus the new vehicle that you will create, what kind of projects will be developed in Celeo and in the new vehicle? And this figure, EUR 400 million, will this be for the new vehicle or not? How are you going to split it? That's the first question.

Second, this has to do with margins. You've mentioned through the presentation that you aspire to improve the margins for services and projects. I don't know if perhaps you could give us more information regarding the potential improvement you see for margins and you've established some sort of target regarding margins in the mid and long term in this period covered by the strategic plan.

Well, regarding the distribution of the EUR 400 million, this is not something that we've already defined. We want to be flexible. And as I said, as opportunities come our way, we'll make a decision to invest, and we'll decide how aggressive we want to be -- types. Well, we're going to continue with transmission lines, substations, renewable projects, data centers. We're open to any other type of technology, always considering stability and generating long-term value.

I'm sorry, comments of Mike.

That will depend on the location. We have some agreements in place. Celeo is focused right now in Latin America. We could have South Africa or other places and Elecnor whenever -- wherever Celeo is not present. So it's on a case-by-case basis. Obviously, the platform that we have, the one we're more familiar with the management -- the management of transmission lines as Celeo. We are delighted with our partner. We have an excellent relationship. And in those projects that we understand that they are made for Elecnor for some reason, Celeo is not fit for that because of the moment or the location, we are able -- and this is important, we are able because of the cash flow that we generate and our ability to carry out investments in terms of debt, we are able to take advantage of any opportunity so that we wouldn't miss it.

Regarding margins, second question. Well, right now, our EBITDA margin is 6%. We want to improve, how much? Well, in terms of percentage, I wouldn't dare to say a figure, but we want to grow and our going project is increasing the margins that we have in services. So above that 6% of EBITDA.

Álvaro Navarro from Bestinver. Given the net cash flow position you have, deleveraging target of 1.5x EBITDA and investments you're considering, the impression I have is that you have a lot of firepower to invest more. I wanted to know if you're considering the possibility of inorganic growth, some M&A activity. And otherwise, if this dividend that you've mentioned, EUR 220 million could be higher because right now, the company, well, if it needs to compete -- its market cap is higher, perhaps the yield -- dividend yield could be higher.

Well, regarding M&A, operations, no doubt. It's -- we always consider it. We are continuously analyzing M&A operations. Historically, we've done things there. Usually, the size is not very big, but we do this on a continuous basis. And your second question, the distribution of dividends. We aspire to at least that dividend, EUR 120 million. So the answer is yes. Depending on the situation, the results, the cash flow, the dividend could be higher.

Ignacio Doménech, JB Capital. I have 2 questions. First one related to services and projects, this EUR 4 billion of annual revenue, given the 50% of the activity comes from networks or electrification. I wanted to see how conservative that target is. This EUR 4 billion, I think it's EUR 3.8 billion.

And the second question is related to the EUR 350 million of free cash flow that you have in the plan. Could you please give us the breakdown? It looks a bit low. I don't know if you're excluding this EUR 170 million in taxes that you would recover this year from some movements of working capital.

Well, I'll answer the first one. Our strategic plan is based not just in our current situation, but also our forecast given our current portfolio. For us, at the end of the day, reaching these business volumes is not a goal. Obviously, it's great if we grow, but we want to focus on margin. And we're not concerned if it's EUR 4 billion instead of EUR 3.8 billion. What matters is improving the margin. Before answering the other question, I would like to add something. With many of you, we've shared this message. Our goal is not growing the first line of sales. We want to grow in the lower line profitability. I think Alberto's speech today was a declaration of intentions. EUR 4 billion, is this ambitious or conservative? We're usually closer to being conservative, but I insist our goal is the lower line. And you've mentioned cash generation. Our cash generation for this 3-year period, this EUR 350 million, it's at least EUR 350 million.

And once again, I would like to explain what Alberto has said, it's at least EUR 350 million. We will be delighted to generate more, and we trust that we will go beyond this figure. We would like committing at least EUR 400 million, this is a complicated challenge in terms of investment. I wish we achieved this. But the requirements of profitability and prudence when it comes to making decisions, this requires effort to reach that figure of EUR 400 million. And sharing this with shareholders, at least EUR 220 million, yes, it's at least EUR 220 million. Everything we expect in terms of cash generation.

As you said, very recently, we waived this collection rights with the tax authorities. In 2024, as a consequence of the sale of our shares in Enerfin, we do make an advancement payment to the tax authority that was really significant, really significant. And this year, we didn't have that. And we've used this cash to distribute the dividend that we paid out last June. We believe, and this is our goal that will be over this figure of EUR 350 million. And for that, we have the cash that has been generated and that will possibly be generated by the business. The cash flow in general, the cash that's invested, the cash that we're going to invest historically, all of this has been generated with the business. Enerfin was built with the business cash. Our share in Celeo is also business cash.

Yes, I'm here. First of all, I would like to join other people in congratulating you for Elecnor's track record this past year. And I would like to ask you something. Considering the 6 levers that make up your strategic plan, the one related to the digital. Could you please give us some examples how digital tools could improve Elecnor boost the margins?

Well, amongst many other things, it's improving processes. We have a clear goal, which is analyzing all and every process. And by implementing new technologies with the same people, we will be able to do more and be more in control. For example, less added value tasks, for example, entering data, we can have -- instead of entering data, people can have -- can view the data and interpret them. This is related to offices, but we also have work sites. We have teams that are doing a market research regarding the tools that exist today or that will exist in the future to start doing pilot tests to improve productivity in these work sites.

And my second question is related to the results that you've achieved these past quarters. It doesn't make sense that the service margin is higher than projects because there's more risk. I understand that this is because of your projects in Australia that were beated before the inflation period we've had. Could you please tell us when you think that these projects will stop having an impact on the accounts and the project margin will be over the service margin.

Well, a significant part of the Australia project has already been executed. I would like to highlight something. Last week, I went to Australia to visit the project, amongst other things. And we've reached important contract milestone. This makes us reassured regarding when the works will be over because we see that we are meeting our deadlines according to our plan. And the forecast is that it will be over the middle of next year.

I would like to add something. Obviously, the approach of revenues and results recognition of the project in Australia is conservative. We couldn't have it otherwise. There are many risks that could impact the project. And as soon as we can mitigate those risks, we'll be delighted. As you said, there's an impact on our margin. These are large projects that add volume to the P&L. And as of today and given where we are in the project, the margin that we are recognizing, it's really modest. But I insist this is what we do in our company. It's not because of the project. The company has a conservative policy. It's what it is. It's not going to change. So as soon as those risks are mitigated, we'll be more than happy to recognize the result.

I'm sorry, comments of Mike.

I wish that was the case.

I wanted to ask you about something. You've mentioned that you could go to other places to improve margins of projects. Could you please give us more information where and how will you do this without having more risks and without worsening your track record? For example, the American market. Apparently, there are many investment opportunities in networks and grids. What are you doing there? How can you grow? Does it make sense for you to grow in the U.S.? And third, I wanted to ask you about Celeo. Is there an opportunity to give more visibility to the value of that asset? Because you've done a great job so far. But in my opinion, this is somehow hidden assets in the context of Elecnor. What can you do to highlight its value?

Well, first of all, the U.S. Well, it's one of our target markets, priority markets. We've been there for a while. We started our serious activities around 2011, and this market has continuously grown. It's the kind of growth that we like, progressive and controlled. And our intention there is continuing to grow. We have 3 subsidiaries, and we want to continue to grow. We've grown a lot organically. Growth is modest, around 15%, 20%, some years. But what we want to do, particularly is growing in a controlled way. One of our main concerns is always accessing good quality labor and improving our teams. That's why we prefer to grow little by little. We know that in the U.S., the number of opportunities is huge. But again, our approach is being sure about the actions that we carry out.

Regarding locations, we work in 50 countries, but the core of our business, 85% is focused on our top 8 countries that you saw on screen. And our intention is to grow in those places, the U.S., Spain, obviously, Italy. These locations, we have a sound staff. We have the tools, the knowledge and this solid base will allow us to continue to grow.

Regarding Celeo, it's true. It's a pending task for us. We have a deal there. It has value. It's an asset and the market is realizing the value it has. We tried to do something. Well, the projects where Celeo has invested as of today, the value of this for Elecnor considering our share, it's well above EUR 800 million, but Celeo is more than its projects. So we take due note. We know this. We need to turn this around because there's a lot of value in Celeo, and we're not sure that we are conveying the right message. So we take due note.

Thank you very much. Let's continue with Celeo. you've said over and over that the relationship with the Dutch is very good. It's 51-49. But when it comes to projects, there are some minority interests. They take almost 30% of Celeo results before APG and Elecnor. I would like to know if there's an interest there or a possibility to increase the stake of Celeo in those projects? That's my first question.

And the second one, Enerfin steps in this industry. I'm not familiar with it, but apparently, Statkraft has changed -- recently changed its strategy. They've sold part of the businesses that bought from Enerfín and other businesses are for sale. So I would like to know if there could be any type of interest from Elecnor to repurchase part of those units that Statkraft wants to sell.

Regarding your second question, well, no, it's not something that we're considering so far. This doesn't mean that we are closed to an opportunity. But at least right now, we're not considering it. Also, you have to bear in mind something where we capture value is greenfield projects. I'm not saying that we've never done it or we will never do it again. But for us, it makes more sense, and it's the goal of the new investment platform, finding projects to be developed to capture as much value as we can. And regarding the projects that you've mentioned from Celeo, I'm going to answer if you agree. Well, I think our relationship with Celeo works. In line with what I've explained is on a case-by-case basis. And the system we have so far will continue to be used. But in the future, we could also consider other options. But in principle, we are going to continue to work the way we are doing right now.

Well, that's an important principle for us when we make investment decisions is including the financial balance, how this impacts our structure. Financial balance is critical for us. It's the first step of any decision-making process.

There have been 2 questions about this, but I would like to elaborate. Regarding Celeo, you've said that look at the future investments in greater networks could be done through the new vehicle or the existing vehicle based on the location, but it could also be based on the profitability given that the partner you have is a financial partner, and they could have different profitability parameters, in particular, when it comes to low interest rates when selling Enerfin, it was not 50-50. In some projects, you had lower stakes. How are you going to manage this? And from a growth perspective in new places, new projects, new services, but mainly new projects, Alberto said that there could be other places.

And my question is on your own, the U.S. is a very big place. You've been there growing organically. It's not that simple or that fast. You had a huge sale. You've generated a lot of liquidity. You've paid out dividends, but we haven't -- you haven't bought anything. So it's still your idea of doing this organically? Do you think that everything is so expensive and you cannot buy? Or do you think that just with your culture, that's the best way even if it's slower?

Again, I'll go back to our culture. Our culture guides us, and we prefer organic growth. No doubt, it could be a slow growth, but it's taken us to where we are, and we want to continue the same way moving forward. But this doesn't mean that if we see an M&A opportunity, we won't do it. The U.S. is a very active market. We're constantly looking at it. If only because of the size of the country, growing organically in places where we are not present, that's complicated. So that it makes sense to buy a company.

You were more capable of handling a purchase. Right now, when you're carrying out your strategic activities, can you do it with your debt ratios?

Well, the debt ratios I've mentioned are where they are. And in case we decide to buy a company, this will not be a large purchase. It's going to be a small purchase that will allow us to establish ourselves in a new area. And from there, we'll grow organically. The data published in June already include the dividend payout that was committed regarding the sale of Enerfin. Obviously, this has been kept in our cash flow positions. but we're not going to miss any opportunity. And when it comes to investments, we mean long-term project investments, transport and generation infrastructures and also M&A activities that could help us grow in some locations. We want to have the capabilities necessary so that we don't miss any opportunities.

We have 2 questions from the Internet, but no, sorry.

Just probably a question the way around on leverage. If you don't find investment opportunities, you will keep on focusing on cash and -- but your commitment was not to leave cash on the balance. That wasn't -- this still hadn't been used properly. Yes. Understood. You were more capable of handling a purchase right now.

Clearly, the idea is to create value and share it. Of course. So we will need to analyze the situation and the risks that might arise. And according to those factors, we will use all the cash probably, but we have always shared the value we generate and the idea is to keep on doing that.

Let's now go to them -- we've got 2 questions. We have 2 questions from the Internet. One has to do with they were requesting a more detailed explanation on the present situation of the [indiscernible] project, which is a project that has been delayed and a question asked by [indiscernible] from Barclays. And he's asking about the status of the project.

Well, I mentioned it earlier, but I'll explain it again. So we are in a situation in which we are feeling optimistic on ending or finishing the project. Of course, the technical and execution complexity is quite high, but a good indicator is that the latest contractual milestones have been met. The relationship with the client is very good. And well, the teams are more than ready and to finish what's left to be done.

Then one question from Pablo Garcia Patino. What would you tell the interest that just started carriers for Elecnor, how can we generate a real impact?

And well, in this case, and I want -- I'm not wearing my CEO hat now, but just my experience. Just with effort, it's part of our culture, something essential and just make it an effort and don't stop knowing your boss, by asking things constantly and training, of course. And that's something that we clearly want to invest in. We want to develop important resources on it on training our own staff and a big part of it is interns or engineers and all the people who are new in the company, we know it's part of our culture that talent grows within -- from within.

And no more questions, Alberto.

Great. If there are no more questions in the room, once again, I want to thank you for attending. We hope we have been able to communicate properly what our vision is, our history and especially where we want to go. And I hope we have answered questions clearly. So without further ado, well, thank you very much, and we can do something that's a bit more fun, which is to share a cocktail. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]